Crypto-Linked Kidnappings Rise in Paris: Experts Blame Leaky Data and New Regulations

A wave of kidnappings targeting people in the crypto community has raised serious concerns in Paris. The latest incident was an attempted kidnapping of relatives of Pierre Noizat, co-founder of French crypto company Paymium, which took place on Tuesday.

These crimes are believed to be driven by ransom demands. In response, French Interior Minister Bruno Rataileau has announced an urgent meeting with crypto industry professionals to find solutions.

Alexandre Stachtenko, Strategy Director at Paymium, criticized current European Union rules that require detailed data collection for crypto transfers. He warned that if such data is leaked, it could endanger people’s lives. “One leak is all it takes for criminals to know who has money and where they live,” he said.

Stachtenko’s warning highlights a growing problem. In recent years, there have been several cases of data theft in the crypto world. One recent example involved Coinbase, a major crypto exchange. Criminals reportedly tricked and bribed their way into stealing digital assets from Coinbase users. When the attackers demanded hush money, Coinbase refused and instead alerted regulators. The company now plans to spend up to $400 million to compensate affected users.

Paymium has urged the government to take stronger action to protect crypto companies. The firm said recent financial regulations are making things worse. One example is the EU’s extended Travel Rule, which now covers crypto transactions. This rule, introduced at the end of 2024, requires platforms to share user details like wallet addresses, which reveal financial activity.

Stachtenko believes these details are often stored or shared in ways that are not secure, putting users at risk of being targeted by criminals.

On the other hand, Sarah Compani, a lawyer who works with digital assets, defended the regulations. She said they are designed to stop illegal activity in the crypto sector.

Looking ahead, the EU has a new anti-money laundering law set to take effect in 2027. It will ban the use of anonymous digital wallets and tools like crypto mixers, which hide the source of funds. France has already introduced a similar law aimed at fighting drug trafficking.

Still, not everyone agrees with the strict rules. Cybersecurity expert Renaud Lifchitz pointed out that tools like crypto mixers are also used by journalists and activists to protect themselves from oppressive governments.

Crypto security has become a major issue. Since 2014, developer Jameson Lopp has tracked at least 219 physical attacks on crypto users. Experts believe the fast-growing crypto sector still lacks proper protection, making it an easy target for criminals.

As the debate continues, one thing is clear: the crypto community in France is facing serious security threats, and both the industry and the government must act quickly to protect people.

Source: mitrade